A Compensation Policy To Correspond To Its Dynamic Business Strategy

Please answer the following questions. 




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1.   Tomax Corporation has 400 employees and wishes to develop a compensation policy to correspond to its dynamic business strategy.  The company wishes to employ a highly competitive workforce capable of responding to a competitive business environment.  Suggest different compensation objectives to match Tomax’s business goals.7 points




2.   Since employees may differ in terms of their job performance, would it not be more feasible to determine the wage rate for each employee on the basis of his or her relative worth to the organization?  Explain.  8 points




3.   What is job evaluation?  Explain the differences between the major job evaluation systems, noting the advantages and disadvantages of each. 7 points




4.   Describe he basic steps in conducting a wage and salary survey.  What are some factors to consider? 7 points




5.   One of the objections to granting wage increases on a percentage basis is that the lowest-paid employees, who are having the most trouble making ends meet, get the smallest increase, while the highest-paid employees get the largest increase.  Explain.7 points




6.   What is compensation score-card and how does it help align a company’s strategy with its compensation system? 7 points




7.   Federal laws governing compensation raise important issues for both employers and employees.  Discuss the following:  8 points




  1. The effect of paying a prevailing wage as required by the Davis-Bacon Act


    b. The effects of raising  the minimum wage. 


    CHAPTER 10



1.   Working individually or in groups, identify the factors for a successful incentive plan. 7 points




2.   Contrast the differences between straight piecework, differential piece rate, and standard hour plans.  Explain where each plan might be used best.  7 points




3.   A frequently heard complaint about merit raises is that they do little to increase employee effort.  What are the causes of this belief?  Suggest ways in which the motivating value of merit raises may be increased.  7 points




4.   What are the reasons behind the different payment methods for sales employees? 7 points




5.   What are the reasons for the success of the Scanlon and Improshare plans? 7 points




6.   Because of competitive forces within your industry, you have decided to implement a profit sharing plan for your employees.  Discuss the advantages of profit sharing and identify the specific characteristics that will ensure success for your plan.  7 points




7.   What are some reasons for the implementation of ESPO?  Cite some of the potential problems concerning their use.  7 points